It's over. The Hoshigaki can sense his chakra. Haku stands, though he doesn't have much of anything on Kisame in terms of height even crouched like he is. It's a better stance to defend himself from. Spy or bloodline, he's not sure which is worse.

"I am a civilian, Hoshigaki-san. Many clans scattered after the last civil war, into hiding or fleeing the country. It's something you should understand."